With student loan debt surpassing $1.7 trillion nationally, the personal-finance company WalletHub today released its report on the States with the Most and Least Student Debt in 2026, as well as expert commentary, to see where borrowers are in the most financial trouble.
WalletHub compared the 50 states and the District of Columbia across 12 key metrics. The data set ranges from the average student loan balance to the unemployment rate among 25- to 34-year-olds to the share of students with past-due loan balances.
| States With the Most Student Debt | States With the Least Student Debt |
|---|---|
| 1. Mississippi | 42. Oregon |
| 2. Delaware | 43. District of Columbia |
| 3. Pennsylvania | 44. Colorado |
| 4. South Carolina | 45. Wyoming |
| 5. West Virginia | 46. Alaska |
| 6. South Dakota | 47. New Mexico |
| 7. Ohio | 48. Washington |
| 8. Louisiana | 49. California |
| 9. Kentucky | 50. Hawaii |
| 10. Georgia | 51. Utah |
Best vs. Worst
- Utah has the lowest average student debt, which is 2.2 times lower than in New Hampshire, the state with the highest.
- Utah has the lowest proportion of students with debt, which is 1.9 times lower than in South Dakota, the state with the highest.
- Wisconsin has the lowest share of student loans in past-due or default status, which is 3.1 times lower than in Mississippi, the state with the highest.
To view the full report and your state or the District’s rank, please visit:
https://wallethub.com/edu/
“College keeps getting progressively more expensive, and so does borrowing money to attend. Federal student loan interest rates recently hit a 12-year high and remain elevated, making it important for borrowers to plan carefully when taking on student debt. In addition to attending college in a less expensive state and pursuing other avenues of funding like financial aid and grants, students should also carefully calculate how much they can afford to borrow before taking out a loan.”
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“Mississippi has the biggest student debt problem in the country. The average amount owed by people with student loan debt equals over 54% of the median income in the state, the highest rate in the U.S. In addition, Mississippi has the highest default rate on student debt. One reason why student borrowers are struggling in Mississippi is that they are having a hard time finding jobs – the state has the third-worst availability of jobs to students, and the second-lowest share of paid internships.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What tips can you offer students looking to minimize the amount of debt they take out for higher education?
“Students should begin by comparing the actual net price of each college rather than the advertised tuition. Grants and scholarships can make an expensive college much more affordable than one with a lower ‘sticker’ price. I would also recommend that students apply to a wide range of financial aid programs, consider attending a community college for the first two years, and seek paid internships or campus employment. The best advice I can offer is to only borrow the money that you need; don’t take out extra loans, as it will be very difficult to pay them back once you graduate.”
Marybeth Gasman – Distinguished Professor, Rutgers University - New Brunswick
“Students should look for the cheapest and fastest path to a degree or credential. Many states allow high school students to take their senior year at a Community College, completing their first year of college credits at little or no cost, and many states offer free or reduced-cost community college.
I also think we need to stop romanticizing the ‘college experience.’ Students should be paying for their education, not the bells and whistles of the Hollywood version of college life. Going deeply into debt for amenities, housing, or a few years of the traditional college experience simply isn’t a good financial investment.”
Julianna C. Golas – Associate Teaching Professor, University of Rhode Island
How does the growth of student loan debt affect the economy?
“The more students owe the less they'll spend on other products and services. It can stifle growth in communities with large former students who are burdened with debt. They become economic slaves to their student loans.”
Daniel E. Goldberg, Ed.D. – Associate Professor of Instruction, Temple University
“It can have a substantial impact in many areas. For example, large student loan payments can delay home purchases, retirement savings, and decisions about marriage and beginning a family. Students from families with fewer financial resources, including many Black and Latine borrowers, often take on more risk because they have less family wealth to draw upon. The effects of debt can severely limit people’s choices and shape the larger economy.”
Marybeth Gasman – Distinguished Professor, Rutgers University - New Brunswick
How should students and their parents think about the return on investment to spending on higher education?
“Parents, along with their children, should check out the colleges and universities that their children may want to apply to. Parents should sit with their children and do the research necessary to determine which schools have courses and resources that will help their children when it comes time for them to enter the job market. Figuring out the potential debt their children may be subjected to should be determined along with the potential benefits that each institution provides.”
Daniel E. Goldberg, Ed.D. – Associate Professor of Instruction, Temple University
“I think they should examine graduation rates, total costs, possible debt, employment outcomes, and projected earnings in their field. Colleges can provide career preparation, intellectual growth, professional networks, and great outcomes over the course of a lifetime. Rather than making your goal choosing the cheapest college or the highest-paying major, it is important to make informed decisions and graduate with as little debt as possible.”
Marybeth Gasman – Distinguished Professor, Rutgers University - New Brunswick
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